In an effort to better compete in the booming Fractional Jet Ownership market, Clearwater, Florida-based Avantair is completing a creative financial transaction which will raise funds needed to help the company grow. Currently, shares of Ardent Acquisition Corp., a Special Purpose Acquisition Company (“SPAC”), are being offered to the public and, by end of February 2007, the shell corporation will absorb Avantair.

Upon consummation of the merger, the combined company is expecting an $84 million market value and a future slot on the NASDAQ (under ticker AACQ). This move secures Avantair as the 5th largest fractional ownership player, behind NetJets, Flight Options, Flexjet and CitationShares. They are also the only stand-alone fractional operator.

The transition to a publicly-traded company will provide stock investors with an opportunity to put their money on a pure-play fractional jet ownership company. More importantly, the IPO will create heightened brand awareness and an elevated profile for Avantair.

With shareholders to report to, the previously-private company will face new challenges, as they now must juggle between maximizing corporate profit while keeping costs low for fractional jet owners.

Aware of these factors, Avantair is taking important steps to achieve economies of scale and operate an efficient business:

First, they are the exclusive fleet operator of the Piaggio P.180 Avanti, which has the lowest fuel burn, largest cabin and shortest runway capability of any jet in its class. By flying these jets exclusively (there are 29 in current fleet with 40 expected by June 30, 2007), savings are made in pilot training, parts and maintenance. Plans to expand the fleet with a lighter, less expensive jet (the Phenom 100s) by 2009 means they will also appeal to a lower price point market in the near future.

Secondly, Avantair owns bi-coastal Fixed Base Operations (“FBO”s) – one in Clearwater, Florida and the other in Camarillo, California. These facilities provide storage, training, repairs, as well as corporate offices for the company. Plans to expand hubs into NY Metro and other areas will continue to cut costs and also become revenue drivers for the company.

What does this mean for consumers?

The funds and awareness raised in the IPO will elevate the stability of the company which translates to a less-risky investment from a consumer perspective. Also, being registered with the SEC makes records public and financials transparent. This is an important criterion when selecting any fractional ownership program.

Exclusivity with Piaggio’s Avanti aircraft has both advantages and disadvantages. On one hand, the jets are the most fuel-efficient in their class, with quieter, rear-mounted props, stand-up cabins and lavatories, and the ability to fly 1575 nautical miles with five passengers per flight. Due to their small size, they are also able to land at any airport with a minimum 4000-foot runway (See table below). On the other hand, since the Avanti is currently the only aircraft in their fleet, longer flights and larger groups are never a possibility. Read a recent review of the Piaggio aircraft.

Avantair has also created a unique pricing structure. With no hourly rate and the lowest acquisition and yearly operating costs, pricing is more predictable than that of competitors. Avantair claims to save consumers an average of 43% over the other fractional providers. The only downside is the comparatively high monthly management fee, which is currently $8,900 a month.

Avantair is truly positioning themselves as the “value” play in an ultra-premium category that typically prioritizes service, time, and flexibility to price. With the current fleet of 29 Piaggio Avantis, more on order, and the future acquisition of 20 Phenom 100s, Avantair plans to have a total of 103 aircraft by the end of the decade. The executive team, large aircraft fleet, bi-coastal FBOs and efficiently run business provides consumers a “cost-effective” option for private air travel with all the perks of personal ownership. Most important of these benefits is the ability to avoid the increasing inefficiencies and inconveniences of commercial air travel.

Helium Report Perspective

Avantair should be considered if you are traveling in smaller groups, on shorter trips (1575nm or less), value access to the largest selection of airports and are looking for a lower investment cost with the basic conveniences of private air travel. That said, consumers should ask themselves the following question before buying into Avantair: As the company grows, will economies of scale translate to cost savings for fractional jet owners or profits for corporate shareholders?

As long as Avantair is able to balance these priorities, their move to public ownership and utilization of low cost aircrafts could expand the fractional ownership category and appeal to a broader range of consumers.

All images courtesy of www.avantiar.com